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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPowell will reinforce the "no rush to cut rates" message on Capitol Hill, says Roger FergusonRoger Ferguson, Former Federal Reserve Vice Chairman and Former TIAA CEO, discusses his expectations for Jay Powell's testimony on Capitol Hill.
Persons: Powell, Roger Ferguson Roger Ferguson, Jay Powell's Organizations: Federal, Capitol
Dollar scales fresh peaks as Fed cut bets recede
  + stars: | 2024-02-05 | by ( ) www.cnbc.com   time to read: +3 min
"A one-two punch from Jay Powell's FOMC presser and a very strong nonfarm payrolls report have essentially closed the door on a March rate cut," said Chris Weston, head of research at Pepperstone. The Japanese yen was last 0.15% lower at 148.58 per dollar, having hit a trough of 148.82 earlier in the session. Treasury yields also jumped on expectations of higher-for-longer U.S. rates, with the two-year yield, which typically reflects near-term interest rate expectations, last up nearly seven bps at 4.4386%. That did little to help the yuan, with the offshore yuan last marginally lower at 7.2182 per dollar, pressured by a stronger greenback. "So far we've just seen speculation and some media reports talking about further support for the equity market or the property market.
Persons: Jerome Powell's, Jay Powell's FOMC presser, Chris Weston, Powell, Carol Kong, CBA's Organizations: Federal Reserve, New, Traders, Fed, CBS, Sterling, Commonwealth Bank of Australia, Treasury Locations: Buenos Aires, Argentina, New Zealand
The IPO market is looking very shaky and confronted with a host of challenges that are holding it back. Regardless, recent IPO performances have been poor across the board. IPO investors cheered the advance by bidding up the Renaissance Capital IPO ETF (IPO), a basket of recent IPOs, in December, assuming the IPO market would open up. CNBC's Jim Cramer, speaking early Thursday on Squawk on the Street , highlighted another obstacle for IPO buyers: investors are getting comfortable returns elsewhere with far lower risk. When David Faber asked why the IPO market was off to such a slow start with the markets so strong, Cramer replied, "I think it's the five percent solution," he said, referring to the ocean of money still sitting in money market funds.
Persons: Jay Powell's, Birkenstock, Smith Douglas, Amer, Greg Martin, Martin, Matt Kennedy, Kennedy, What's, Rainmaker, Del, CNBC's Jim Cramer, David Faber, Cramer Organizations: Amer, Wilson, NYSE, Smith Douglas Homes, BrightSpring, Renaissance Capital, Rainmaker Securities, Renaissance, Microsoft Locations: EBITDA, Squawk
To Cramer, stocks able to do well in these uncertain conditions have strong innovation and effective cost-saving measures. "Innovation and self-help are what allows stocks to buck the pull of the bond market," he said. He said Meta and Alphabet are effectively using AI to bolster ad sales, which are higher than many traditional media channels. He also said Apple 's products are "special" enough to withstand pressures from the bond market. Cramer then highlighted Disney , which he said is managing a powerful turnaround despite bond market stress.
Persons: CNBC's Jim Cramer, Jerome Powell's, Cramer, could've, Jay Powell's, Powell Organizations: Microsoft, Nvidia, Apple, Disney
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFormer Fed Vice Chair Roger Ferguson on his expectations for rates into year-endFormer Federal Reserve Vice Chair Roger Ferguson discusses the road ahead for monetary policy following Chair Jay Powell's comments yesterday.
Persons: Roger Ferguson, Jay Powell's Organizations: Former, Federal
Detrick: We favor investing in small-caps and cyclical stocks
  + stars: | 2023-10-20 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDetrick: We favor investing in small-caps and cyclical stocksRyan Detrick, Chief Market Strategist at Carson Group, discusses the market environment following Jay Powell's comments yesterday.
Persons: Ryan Detrick, Jay Powell's Organizations: Carson Group
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNow's the time to get more into fixed income, says Komal Sri-KumarKomal Sri-Kumar, president of Sri-Kumar Global Strategies, joins 'Squawk Box' to preview Fed Chair Jay Powell's speech at the annual Jackson Hole conference, why he believes Powell will be relatively dovish this year and could potentially push the yield on the 10-year note down further, and more.
Persons: Komal, Kumar Komal, Kumar, Jay Powell's, Jackson, Powell Organizations: Sri, Kumar
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailA soft-ish landing seems more likely than not, says Roger FergusonRoger Ferguson, former Federal Reserve vice chairman, joins 'Squawk Box' to preview Fed Chair Jay Powell's remarks from the Jackson Hole Economic Symposium, the impact on the Fed's inflation right, and more.
Persons: Roger Ferguson Roger Ferguson, Jay Powell's Organizations: Federal Reserve, Jackson
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTimiraos: It will take a lot for the Fed to not raise interest rates next monthNick Timiraos, Chief Economics Correspondent at the Wall Street Journal, discusses Fed Chair Jay Powell's testimony before Congress.
Persons: Nick Timiraos, Jay Powell's Organizations: Fed, Wall Street
Morning Bid: Not so fast, debt ceiling bulls!
  + stars: | 2023-05-22 | by ( ) www.reuters.com   time to read: +2 min
A look at the day ahead in European and global markets from Kevin BucklandYou didn't think it would be that easy, did you? Investors are on edge after equities and the dollar got knocked back Friday, when Republican negotiators unexpectedly walked out of debt ceiling talks. Discussions now seem to be back on track, with President Joe Biden due to meet House Republican Speaker Kevin McCarthy later today. Another potential boost comes from the PBOC's assessment that the fundamentals of China's economic stability and long-term improvement have not changed. Luis de Guindos and Philip Lane are among Lagarde's ECB colleagues on speaking duty today.
Treasury's Janet Yellen rains on Jay Powell's parade
  + stars: | 2023-03-23 | by ( Bob Pisani | ) www.cnbc.com   time to read: +3 min
Federal Reserve Chairman Jerome Powell's press conference Wednesday threaded the needle almost perfectly. By the time Powell ended the press conference around 3:15 p.m. Both Yellen and Powell have been at great pains to say that deposits are safe, and by so doing are implying an implicit backstop for deposits. Powell, in his press conference, said "I think depositors should assume that their deposits are safe." But in her testimony Wednesday, Yellen said the Federal Deposit Insurance Corporation (FDIC) was not considering providing "blanket insurance" for all banking deposits.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're much closer to the end of the rate-hike cycle, says NZS Capital's Brad SlingerlendBrad Slingerlend from NZS Capital joins 'Closing Bell: Overtime' to discuss the late-day sell-off that hit stocks after Fed Chair Jay Powell's press conference, which followed the announcement of a 25 bps rate hike.
The bond market's recession warning has gotten more urgent
  + stars: | 2023-03-13 | by ( Patti Domm | In | ) www.cnbc.com   time to read: +5 min
The bond market is sending a more urgent recession warning and also signaling that the Federal Reserve may have to pause raising interest rates — giving up its fight against inflation. The sharp move in the 2-year yield also resulted in a rapid steepening of the yield curve. "The steepening always starts to happen because the market expects the Fed to cut rates in response to that recession." DoubleLine Capital CEO Jeffrey Gundlach also said the "aggressively steepening" of the Treasury yield curve after inversion is "highly suggestive of imminent recession." The 2-year yield jumped above 5% after he spoke.
Jeffrey Gundlach speaking at the 2019 SOHN Conference in New York on May 6th, 2019. "I just think that, at this point, the Fed is not going to go 50. I would say 25," Gundlach said on CNBC's "Closing Bell" Monday. While Gundlach, sometimes called the "bond king" sees more tightening ahead, he doesn't necessarily think that's the correct response right now. The widely followed investor also warned that the rapid steepening of the Treasury yield curve after a sustained period of inversion is highly indicative of imminent recession.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC’s full interview with G Squared’s Victoria Greene and Jefferies' David ZervosG Squared’s Victoria Greene and Jefferies' David Zervos join 'Closing Bell: Overtime' to discuss market reaction to Fed Chair Jay Powell's second day in front of Congress and how investors should position themselves ahead of the jobs report.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDifferences in bond and equity markets are causing confusion for investors, says G Squared's GreeneG Squared’s Victoria Greene and Jefferies' David Zervos join 'Closing Bell: Overtime' to discuss market reaction to Fed Chair Jay Powell's second day in front of Congress and how investors should position themselves ahead of the jobs report.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGayeski: In this investment environment, focus on preservation of capitalFS Investments' Troy Gayeski explains how Fed Chairman Jay Powell's testimony is impacting the markets.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPowell reiterated what we've been hearing all along, says Edward Jones' Mona MahajanBespoke Investment Group's Paul Hickey and Mona Mahajan of Edward Jones join Mike Santelli and the 'CNBC Special: Taking Stock' to discuss today's market reaction to Fed Chair Jay Powell's Senate testimony.
Jim Cramer says price stability is right around the corner
  + stars: | 2023-02-09 | by ( Krystal Hur | ) www.cnbc.com   time to read: +1 min
CNBC's Jim Cramer on Thursday said the Federal Reserve is closer to winning its battle against inflation than Wall Street might believe. "Price stability … is right around the corner," he said, adding that the Fed "just needs to be aware there's really only one area of strength left in this entire economy." Stocks slipped on Thursday, reversing earlier gains as Wall Street's concerns about the central bank's interest rate hikes overshadowed strong corporate earnings. In other words, disproportionately high spending from people with large incomes is likely clouding the true state of inflation, according to Cramer. "Maybe [Fed Chair] Jay Powell's made more progress fighting inflation than [his] colleagues want to believe, except for this one area," he said.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe January rally may run out of steam if yields rise, says Nuveen's Saira MalikCNBC's Steve Liesman and Nuveen’s Saira Malik join 'The Exchange' to react to Fed Chair Jay Powell's remarks in Washington.
U.S. Federal Reserve Board Chairman Jerome Powell holds a news conference after Federal Reserve raised its target interest rate by three-quarters of a percentage point in Washington, September 21, 2022. Kevin Lamarque | ReutersCall it a sign of the times where a half percentage point interest rate increase from the Federal Reserve is considered looser monetary policy. In 2022, they've done it five times — four times for three-quarters of a point and once for a half percentage point — with Wednesday's widely anticipated 0.5 percentage point move to be the sixth. Wednesday's meeting of the rate-setting Federal Open Market Committee will bring an assortment of moves to chew on. The 'dot plot' and the 'terminal rate'That "terminal rate" of which Masotti spoke references the expected end point for the Fed and its current rate-hiking cycle.
No matter what Federal Reserve Chairman Jerome Powell tells market participants these days, it seems they only hear the good stuff. Two recent examples: First in July, when Powell hinted that smaller interest rate hikes could be on the way. Chair Powell is really trying to message the fact that the fed funds rate has to be restrictive to tamp down inflation. A month and a half later, Powell delivered an uncharacteristically terse speech at the Fed's annual Jackson Hole, Wyoming summit. One more chance So Powell heads into next week's Federal Open Market Committee meeting with another opportunity to set the market straight.
The robust jobs market is good news for American workers, but concerning for the Federal Reserve and equity bulls alike. “To be clear, strong wage growth is a good thing,” Fed Chairman Jerome Powell said at the Brookings Institution on Wednesday. “But for wage growth to be sustainable, it needs to be consistent with 2% inflation.” The year-over-year wage growth rate increased to 5.1% in November, more than double that goal. Getting back to a sustainable level of wage growth and tamping inflation will require reducing demand for labor. The dream is over: For the past year, Powell has advanced the optimistic idea that wage growth could be lowered without slowing the economy into recession.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed Powell's inflation remarks are a 'green light' to stay in stocks, Jim Cramer saysCramer explained his takeaways from Fed Chair Jay Powell's speech on Wednesday.
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Be cautious about Fed news We trimmed our position in COST Humana raises its guidance 1. Humana raises its guidance Humana (HUM) on Thursday raised its 2023 membership guidance for its individual Medicare Advantage business and reiterated its 2022 adjusted earnings guidance. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
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